While these clients may have saved well, they may not know how much they can spend safely over a long retirement without running out.
Mike and Paula are recently retired clients. As they adjust to having a less structured schedule and no biweekly paychecks, they are uncertain about how much they can afford to spend each month. They talk with their financial professional about expected variations in the market and how much they should adjust their annual withdrawal rate to make sure they don’t outlive their income in retirement.
Three questions to start the conversation:
- When you think about your retirement lifestyle, what are the most important qualities you'd like to maintain?
- Would having a set amount of monthly income help you feel more in control of your money in retirement?
- Is it important to have a portion of your income protected to cover both you and your spouse for life?
Do you have clients like Mike and Paula?
- To give clients the reliability of lifetime income with opportunities for income increases, consider a variable annuity with optional benefits.
- To give more conservative clients the dependability of lifetime income, consider a fixed or fixed indexed annuity with optional benefits.
- To give clients a level of protection from market downturns, consider an indexed variable annuity with an optional benefit.